MINISO Group Holding Limited has issued a positive profit alert for the first quarter. The company anticipates revenue between 5.678 billion and 5.728 billion yuan, representing a year-over-year increase of approximately 28% to 29%. Its profit for the period is expected to reach 1.228 billion to 1.248 billion yuan, marking a surge of about 195% to 200% compared to the same period last year.
However, the substantial profit growth requires qualification. A significant portion of this increase is attributed to unrealized and mark-to-market gains of approximately 870 million to 880 million yuan from a strategic investment in the artificial intelligence sector. This investment return accounts for roughly 70% of the quarter's profit. In contrast, the company's share of profit from its investment in Yonghui Superstores Co.,Ltd. contributed approximately 78 million yuan during the same period.
It is noteworthy that in 2025, MINISO's investment in Yonghui resulted in a loss of 813 million yuan, negatively impacting the company's overall profitability that year. Yonghui Superstores reported a net profit attributable to shareholders of 287 million yuan for the first quarter of 2026. Historically, since 2021, Yonghui has typically reported a profit in the first quarter but incurred losses in the subsequent quarters, casting uncertainty on whether it will achieve a full-year profit for 2026 and, consequently, provide a positive contribution to MINISO's results.
Excluding foreign exchange gains and losses, MINISO's adjusted operating profit for the first quarter was between 829 million and 849 million yuan, an increase of about 13% to 16% year-over-year. Its adjusted net profit, excluding foreign exchange effects, is estimated at 624 million to 644 million yuan, reflecting a more modest growth of 7% to 10%.
Looking back at the full year 2025, MINISO achieved a record-high annual revenue of 21.44 billion yuan, a 26.18% increase. However, its annual profit declined by 54.09% to 1.21 billion yuan. The significant loss from the Yonghui investment was a primary factor in this profit decline. As of the end of 2025, MINISO continued to hold approximately 29.4% of Yonghui's issued share capital.
In September 2024, a subsidiary controlled by MINISO acquired a 29.4% stake in Yonghui Superstores for 6.27 billion yuan, becoming its largest shareholder. Founder Ye Guofu had previously expressed confidence in turning Yonghui around, focusing on reducing losses and improving gross margins. However, by the end of 2025, Yonghui's store count had sharply decreased from 775 to 403, with a net closure of 372 stores for the year. Its annual revenue fell by 20.82% to 53.508 billion yuan, and it reported a net loss attributable to shareholders of 2.552 billion yuan, an increase of over 70% from the previous year's loss of 1.465 billion yuan.
During a recent earnings call, Ye Guofu reassured investors that his primary focus remains on MINISO's core business, stating he dedicates over 90% of his energy to it. He emphasized that Yonghui has completed management team adjustments and appointed a new CEO, aiming for independent daily operations and strategy execution. He advocated for a long-term perspective on the Yonghui investment.
Further analysis of MINISO's 2025 performance reveals additional challenges. While the company's global store count increased to 8,151, with overseas markets contributing over 70% of the net store additions, the growth rate of same-store Gross Merchandise Value (GMV) in overseas markets slowed. The overseas same-store GMV growth rate shifted from a mid-single-digit increase in 2024 to a low-single-digit decrease in 2025. Regionally, Asia (excluding China) and Latin America experienced mid-single-digit declines in same-store GMV growth.
The company's trendy toy brand, TOP TOY, considered a potential second growth curve, also faced challenges. In 2025, TOP TOY's revenue grew by 94.8% to 1.916 billion yuan, but it recorded an operating loss of 106 million yuan and a pre-tax loss of 267 million yuan, a reversal from profitability in the prior year.
In building its global IP ecosystem, MINISO employs a dual-drive model of "International IP + Owned IP." The company collaborates with over 180 top global IPs, including Disney and Sanrio. It has also signed 18 in-house trendy toy artist IPs. Among them, products related to the core owned IP, YOYO, generated sales exceeding 100 million yuan within six months of launch. Ye Guofu projected that YOYO-related products would bring in approximately 165 million yuan in revenue for the first quarter of this year, with an annual estimate of 800 million to 1 billion yuan.
In other news, a consumer recently reported finding a live insect in a product purchased from MINISO's mini-program, which was part of a collaboration with artist Jennie. The consumer stated the item was returned, and the merchant offered a compensation of 1,000 yuan. MINISO's customer service has acknowledged the incident and stated it is under verification.
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